Nov. 26 (Bloomberg) -- European banks’ reluctance to make
unsecured loans to one another rose to near the highest in seven
weeks, according to a money-market indicator.

The difference between the euro interbank offered rate and
overnight indexed swaps, known as the Euribor-OIS spread, was
12.6 basis points at 8:20 a.m. in London from 12.5 on Nov. 23,
data compiled by Bloomberg show. The measure reached 12.75 on
Nov. 23, the highest since the start of October.

The cost for European banks to borrow in dollars was little
changed with the three-month cross-currency basis swap at 27.5
basis points below Euribor. The one-year basis swap was
unchanged at 28.5 basis points below Euribor. A basis point is
0.01 percentage point.

The European Banking Federation’s euro overnight index
average, or Eonia, of unsecured lending deals was set at 0.074
percent on Nov. 23 from a record low 0.071 percent the day
before. The Eonia swap, an estimate of average overnight
borrowing costs over the next three months, was little changed
at 6.4 basis points.

Lenders increased overnight deposits at the European
Central Bank on Nov. 23 to 234 billion euros ($303 billion) from
229 billion euros the day before.